Here at Exclusive Motorcars, we know that trade-ins help give our customers in and around Baltimore, MD a better monthly payment and an overall better deal, while they help to replenish our outstanding inventory of used vehicles. For shoppers buying or selling a car in Maryland, it’s important to know the ropes.
There are a few rules and regulations when it comes to trading in a vehicle in the state of Maryland, and we want to make sure our customers know everything they need to before they make a buying decision.
Trade-In Rules and Regulations
According to the Code of Maryland Regulations, the following are required for trading in a vehicle in our state:
- The dealer will determine the trade-in allowance that is deducted from the purchase of another vehicle.
- Trade-in allowances cannot be divided among the purchase prices of more than one vehicle.
- Only one trade-in vehicle can be applied to the sale of a new model.
- A vehicle that has been titled/registered outside of Maryland may still be used in a Maryland vehicle purchase.
Trade-In Tax Credits
Also—and this is fairly new in Maryland—all trade-ins are eligible for a tax credit when they are used in the same transaction as a new vehicle purchase. In the past, this tax credit would not apply when the trade-in was a lease and the new vehicle was a purchase (or when the trade-in and the new vehicles were both leases), but now the credit applies across the board. That’s good news for shoppers and dealers alike!
If you ever have questions about these types of rules or regulations when selling a car in Maryland, simply reach out to your Maryland car dealer here at Exclusive Motorcars MD, and we’ll happy to answer any of your questions.